Klarna Group plc
Klarna Group plc is the parent company of Klarna’s global digital bank and flexible payments platform, built around consumer payments, shopping tools, and banking services. The business connects consumers and merchants across online and offline commerce through its app, card, checkout integrations, and partnerships with major payment platforms.
Fiscal year 2025 · change from previous year
Development 2022–2025
Business
Share of revenueDeferred and installment payment products used at checkout for consumer purchases.
Deposits, savings, and related banking services offered through Klarna Bank AB.
App-based shopping, account, and financial tools that deepen consumer engagement.
Checkout integration and commerce network services that connect merchants to Klarna users.
Customers
Klarna serves consumers who want flexible ways to pay, save, and manage purchases across everyday commerce. It also serves merchants and payment partners that use Klarna to increase checkout conversion, broaden payment choice, and reach Klarna’s consumer base.
Individuals buying online or offline who use Pay Later, Pay in Full, or savings tools for convenience and control.
Retailers and e-commerce businesses that accept Klarna to improve checkout completion and reach more shoppers.
Partners such as PSPs that embed Klarna across large merchant networks for broader distribution.
Consumers using Klarna Bank AB deposit and savings services for everyday financial management.
Strategy
Klarna’s strategy centers on expanding checkout presence, growing its consumer and merchant network, and increasing usage of its AI-enabled commerce platform. It also emphasizes deeper consumer engagement through banking, shopping, and payment services, supported by partnerships with major payment processors and wallet platforms.
More checkout presence increases transaction volume and strengthens network effects between consumers and merchants.
AI tools can improve personalization, shopping relevance, and customer engagement across the platform.
Scale improves brand relevance and creates more opportunities for cross-use of payment and banking products.
Banking and savings products can increase retention and broaden revenue relationships beyond checkout payments.
Geography
Klarna operates across 26 countries and serves consumers and merchants through a global commerce network. The company is incorporated in England and Wales, has principal executive offices in London, and operates as a licensed bank in the EEA through Klarna Bank AB.
Risks
Klarna’s main risks come from credit performance, consumer spending behavior, and execution risk in scaling a network-based payments platform. As a regulated financial services business, it is also exposed to banking regulation, funding conditions, technology reliability, and competition from payment and fintech rivals.
- Consumer credit lossesImpact: HighLikelihood: Medium
Klarna extends short-duration consumer payment credit, so repayment performance directly affects results and risk appetite.
Exposure: Pay Later and financing products
- Regulatory and compliance riskImpact: HighLikelihood: Medium
The business spans payments, lending, and banking, which are subject to consumer protection and prudential rules.
Exposure: EEA banking and global payments
- Merchant and consumer adoption riskImpact: HighLikelihood: Medium
The network model depends on both sides of the platform continuing to use Klarna at checkout and in-app.
Exposure: Merchant integrations and app usage
- Technology and cyber riskImpact: MediumLikelihood: Medium
Operations depend on a cloud-native platform, app infrastructure, and partner integrations that must remain reliable.
Exposure: Digital payments platform
Accounting
Judgemental itemsTransaction revenue and consumer service revenue must be separated, affecting reported growth and mix.
Impact: Affects revenue composition and comparability
Consumer receivables require forward-looking loss estimates that can change quickly with credit performance.
Impact: Affects provisions and net receivable carrying values
Acquired goodwill is reviewed for impairment based on operating segment value, not amortized.
Impact: Affects asset values and impairment charges
The group operates internationally, so currency movements can affect reported results in USD.
Impact: Affects reported revenue and balance-sheet items
The new presentation standard may alter income statement structure and performance measure disclosure.
Impact: Affects presentation and comparability
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Last updated: 28/09/2026